We are entering into the second quarter of the 2017 year in commercial real estate. As we progress into the year,, we are are able to get a clearer idea of what the commercial real estate market holds in store. With the stabilization of the overall market, commercial real estate has seen a resurgence. Here is what the remainder of 2017 is predicted to do.
Property Value Rising
A feeling of renewed confidence in the market is driving how investors are approaching how to invest their money. The anticipated lifting of regulatory barriers and the lowering of tax rates could trigger commercial real estate growth in sectors ranging from multifamily housing to hospitality and industrial. Interest rates will inevitably rise, but the impact should not be even close to 2008’s.
Mixed Use New Construction
Commercial property will continue to reflect the lifestyle changes that Americans are making. Retail, office and residential mixed use property construction will see a surge in 2017. A walkable lifestyle is one of the highest priorities of people relocating. Tech and retail industries alike will take advantage of these trends, offering the ability to work, shop and live where you live, both in high density urban centers and more suburban areas alike.
The retail industry has seen a major disruption with e-commerce and the writing is on the wall for big box stores. Addressing the logistics of transporting and distributing goods has investors and developers looking to answer the demand. The answer to the e-commerce trend will most likely be newly developed and strategically placed micro-distribution centers and re-purposed big box stores.
Chattanooga has a fast paced commercial real estate market. We are in constant need of new and redesigned properties to answer the changing and growing market. If you are an investor or a business owner, you should be aware of the what the future of 2017 holds. Contact me today to discuss what that means to you.